HomeContributorsTechnical AnalysisEURUSD Outlook: Bears Look For Final Break Below Key 1.1314/00 Supports

EURUSD Outlook: Bears Look For Final Break Below Key 1.1314/00 Supports

The Euro retested last Friday’s low at 1.1335 on Wednesday but was far unable to break lower.

The pair is consolidating within narrow range above 1.1335, with near-term bias remaining with bears and eyeing key supports at 1.1314/00 (200WMA / 15 Aug low).

Strong demand for the US dollar keeps the Euro pressured, along with weak bloc’s data (weaker than expected German labor data and EU GDP on Tue).

Today’s downbeat German retail sales (Sep m/m 0.1% vs 0.5% f/c and Sep y/y -2.6% vs 0.9% f/c) maintain negative tone ahead of release of EU CPI data (y/y 2.1% f/c vs 2.1% prev).

Strong bearish setup of daily techs maintain negative tone, as last week’s long red weekly candle weighs and the pair being on track for strong monthly loss, keeping focus at the downside.

Eventual break below 1.1300 pivot would expose next strong support at 1.1178 (Fibo 61.8% of 1.0327/1.2555 ascend).

Broken neckline of asymmetric H&S pattern marks initial resistance at 1.1370 (reinforced by falling 5SMA), with extended upticks expected to stall under falling 10SMA (1.1413) to keep bears in play.

Res: 1.1370, 1.1413, 1.1444, 1.1478
Sup: 1.1335, 1.1314, 1.1300, 1.1285

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
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